We asked, “What’s the solution?? Is there even a solution available?”
We think so and the solution is pretty damned obvious to us.
We asked, “Where are these resources?”
The answer is at the top of every company’s economic food chain.
We asked, “How can these resources be implemented in an emergency fashion?”
The answer is through proportional pay cuts and reinvestment into the affected company and workforce.
We asked “Who can qualify for these resources?”
The answer is every American business.
But will top earning management and CEOs willingly surrender and reinvest 7 figure incomes into their own workforce? Can they afford NOT to? Some companies have already stabilized their workforce and they prepared for it ahead of time!
In fact, president and chief executive officer of Canada’s Leon’s Furniture Ltd “always believed in saving for a rainy day.” “When times are tough, we reinvest in our own business.” According to The Star, the company is celebrating 100 years of business. Note the present tense: “IS.”
If Canada can (1) recognize the value of reinvestment and (2) implement its strategies, why can’t the U.S.A.?! If not, why not? And what does that say about how CEOs regard their own businesses?
Stop Firing American Workers
A lack of sufficient sales is a justified reason to cut costs. But it is NOT a justified reason to ignore critical financial dependencies and and leave our nation’s economic engine bone dry. Workers are consumers. Consumers spend money. Money pays for business. And business employs Americans. A healthy economy is dependent on this engine, and every single one of its contributions… especially employees. Yet employees, the blood of our economy, are the first commodities to go in an economic crisis.
To properly adjust to an economic crises and maintain business as usual, companies must cut costs from the single, but largest budget expenses if they’re to survive. That’s single expenses – not multiple expenses. Consider the following illustration.
In this illustration, the the dark figures at the bottom of the triangle represent employees and the gray figures in the middle and at the top of the triangle represent top management figures and CEO types. The dollar figures represent the amount of money it takes to keep all of these figures employed at a single company.
Notice that the bulk of the money is spent on maintaining a smaller quantity of employees. The large “X” and the strikeout line across the darker figures indicate the reaction our current economic crises: Eliminating employees as a way to eliminate costs. That’s no solution. That’s another problem for reasons we already described earlier.
Slash Real Expenses, Reinvest Savings, & Save the Nation
Now consider the illustration below. It draws out an actual solution.
In this illustration, the slashed dollar signs represent cut costs. The barely visible slashed dollar sign at the bottom represents a slight pay cut. And the lines pointing to the smaller dollar sign represents re-investment. Here, what was once given to the smaller quantity of employees is now reinvested back into the company and the work force.